Latest news with #ElfBeauty
Yahoo
8 hours ago
- Business
- Yahoo
E.l.f. Soars After $1 Billion Pow(d)er Move to buy Hailey Bieber's Rhode
Haley Bieber has the face that launched a thousand beauty trends — from latte makeup to glazed donut skin and other looks that sound like they're straight off a Starbucks menu. A few years ago, Bieber began using her star power for her own brand, Rhode. E.l.f. Beauty's stock jumped 24% yesterday after the company announced it would acquire Bieber's skincare and makeup startup in a $1 billion deal consisting of $600 million in cash and $200 million in shares, plus a potential $200 million results-based bonus to sweeten the pot. READ ALSO: Shrinking GDP Shows Tariffs' Impact as Courts Scrutinize Their Legality and Omada Health Preps to Go Public as IPO Market Revives At less than three years old and with just 10 products, Rhode is a rocket ship. It garnered $212 million in net sales last year and doubled its customers. Sephora said last week it would start carrying Rhode at stores in the US, UK, and Canada. Rhode is E.l.f.'s biggest acquisition so far as it looks to push beyond budget buyers: Both E.l.f. and Rhode are favorite brands among Gen Z TikTokers. But while E.l.f. goes viral for budget-friendly 'dupes,' like a Dior-ivative $8 lip oil, Rhode sells premium products, like a $40 lip peptide treatment. E.l.f. could capture more of the market by buying Rhode, hoping that customers concerned about the economy will either trade down to buy its namesake line or splurge on the high end. While E.l.f. beat analysts' sales and profit estimates last quarter, the company told investors earlier this year that it's seeing cooling demand across the beauty market. Last week, E.l.f. said it'll have to raise prices by $1 (a big jump for $3 eyeliner) to offset tariffs in China, where 75% of its products are made. Time for a Touch-up. As Big Beauty braces for tariffs, smaller brands like Rhode are proving resilient. Dealmaking has sputtered since the years around 2020, when brands like Deciem/The Ordinary and Kylie Cosmetics were scooped up. But E.l.f.'s buy could inspire more deals in the sector — a new wave of celeb-backed beauty brands could be attractive buys (or go public), including Selena Gomez's Rare Beauty and Emily Weiss's Glossier. Tapping brands that come with built-in fan bases could protect beauty's biggest companies. This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
11 hours ago
- Business
- The Star
Why Elf Beauty is banking big on Rhode, Hailey Bieber's fan-favourite brand
A Rhode pop-up sells products from the beauty brand founded by Hailey Bieber, the fashion model, entrepreneur and wife of pop star Justin Bieber, in New York. Photo: The New York Times Rhode, the upstart beauty brand founded by fashion model and entrepreneur Hailey Bieber, has been acquired by Elf Beauty for US$800mil (approximately RM3.4bil) in cash and stock, an eye-popping sum for a line of blushes and lip glosses that's not yet three years old. In an industry crowded with other celebrity-fronted beauty brands, Rhode has experienced rapid growth, which many attribute to Hailey's considerable influence on social media. Hailey, a daughter of actor Stephen Baldwin and the wife of pop star Justin Bieber, has 55 million followers on Instagram and 15 million on TikTok. 'Rhode has seen exponential growth over the past three years because of deliberate decisions and best-in-class marketing and community building,' Hailey said in a statement. 'To continue to grow strategically, we need the partnership of Elf. Beauty to fuel innovation and global expansion.' On top of the guaranteed US$800mil (RM3.4bil) payout, the Elf deal, which was announced Wednesday (May 28), includes the potential for an additional US$200mil (RM850mil), contingent on Rhode's growth over the next three years. Rhode, which Hailey founded with Lauren and Michael D Ratner, reported net sales of US$212mil (RM901mil) in the year that ended March 31. Read more: Hailey Bieber, known for setting beauty trends, may sell her makeup brand Rhode According to Tarang Amin, the CEO of Elf Beauty, the acquisition had been in the works since October. Amin said he was eager to close on it to marry the Generation Alpha fans Hailey has pulled in with the Millennials and Gen Z consumers whom Elf has traditionally relied on. The expansion includes a partnership with Sephora that will bring Rhode products to physical stores for the first time since the brand's debut. But even without a consistent presence in brick-and-mortar shops, Rhode had built a fan base that Amin found impressive. 'I have not seen another brand where there are communities waiting, or a pop-up event in LA (Los Angeles), willing to camp out overnight for 14 hours in line – not just for product, but to buy into the entire lifestyle,' Amin said in a video interview Thursday (May 29). Last summer, hundreds waited in line in New York to experience the Rhode pop-up – and possibly get a glimpse of Hailey – in a SoHo storefront. Amin said he admired Rhode's ability to 'engage and entertain' its customer base. Compared with Elf, he added: 'They skew younger, but their level of engagement is what really appeals to me.' As part of the deal, Hailey will stay on at Rhode as the brand's chief creative officer, and she will serve as a strategic adviser to both companies. Korinne Wolfmeyer, a senior research analyst at investment bank Piper Sandler who specialises in the beauty and wellness markets, believes that Hailey's ability to translate her connection with her fans into sales is what most aligns with Elf's strategic priorities. Read more: 'I want to be everywhere possible': Hailey Bieber plans on beauty world takeover 'It seems like they really appreciate the way Hailey connects with her followers and her community,' Wolfmeyer said. 'They view it as a similar path as Elf, using that consumer connection to really drive the performance.' While celebrity brands like Kylie Jenner's Kylie Cosmetics and Selena Gomez's Rare Beauty have proved to be significant players in the cosmetics industry, Hailey's fame may not be the biggest attraction for Elf Beauty. Celebrities bring a lot of reputational and trend risk, and companies are usually wary of how much they invest in their brands, Wolfmeyer said. But unlike other beauty companies, Rhode also veers into wellness, marketing many of its products with claims that they promote skin health. 'Rhode was maybe one of the earlier movers in that category,' Wolfmeyer said. 'There is obviously a lot of white-space potential, and it does resonate with the younger consumers. I think that's very appealing.' – ©2025 The New York Times Company This article originally appeared in The New York Times.
Bloomberg
20 hours ago
- Business
- Bloomberg
Stock Movers: Elf, Gap, Texas Pacific
- Ulta Beauty (ULTA) shares surged the most since 2020 after delivering first-quarter results that topped Wall Street estimates, signaling that shoppers are buying up beauty products despite growing economic concerns. Profit last quarter was $6.70 a share, the company said Thursday after markets closed, beating analyst expectations for $5.80. Comparable sales were also higher than expected. The company boosted its full-year outlook for sales and profit. The better-than-expected results bode well for the turnaround plan led by Steelman as growing economic worries push consumers to pull back spending elsewhere. The company's effort in part leans on exclusive products such as a new hair-care line from Beyoncé. - Elf Beauty (ELF) shares surged on Thursday, after the cosmetic company agreed to acquire Hailey Bieber's beauty brand, Rhode, for $1 billion. - Texas Pacific Land (TPL) fell for its eighth consecutive day on Thursday, its longest losing streak since April 2023.
Time of India
a day ago
- Business
- Time of India
Ulta Beauty raises annual profit forecast, posts upbeat quarter on resilient demand
HighlightsUlta Beauty raised its annual profit forecast to a range of $22.65 to $23.20 per share after reporting quarterly sales of $2.85 billion, surpassing analysts' estimates. The company experienced a 2.9 percent increase in comparable sales driven by younger shoppers' demand for trendy brands like Elf Beauty and celebrity-owned brands such as Rihanna's Fenty Beauty. Ulta Beauty's quarterly adjusted profit of $6.70 per share exceeded expectations, while the company's gross profit increased by 4.2 percent to $1.11 billion compared to the previous year. Ulta Beauty raised its annual profit forecast after beating quarterly results on Thursday, as lower inventory losses as well as new launches such as Milk Makeup and K-Beauty skincare brands helped drive demand at its stores. Shares of the company were up about 8 per cent in trading after the bell. Cosmetics retailer saw uptick in sales across its stores, especially from younger shoppers willing to spend on trendy and affordable brands such as Elf Beauty . Ulta Beauty has strengthened customer traffic by introducing celebrity-owned brands, such as Rihanna's Fenty Beauty , along with investments in marketing and digital channels. The company expects annual profit to be in the range of $22.65 to $23.20 per share, compared with a prior forecast of $22.50 to $22.90 per share. It posted quarterly sales of $2.85 billion, compared with the analysts' estimate of $2.79 billion, as per data compiled by LSEG. The company's comparable sales in the quarter ended May 3 rose 2.9 per cent compared to a year ago, driven by a 2.3 per cent increase in average ticket and a 0.6 per cent rise in transactions. It earned quarterly adjusted profit of $6.70 per share, topping the estimate of $5.81 per share. Budget-cosmetic brand Elf Beauty posted an upbeat quarter on resilient demand, while luxury firms such as Estee Lauder's business remained pressured due to tariff uncertainty. The Trump administration's unpredictable tariff shifts have disrupted businesses and shaken consumers worldwide, who are now bracing for an economic recession . Ulta Beauty expects comparable sales for fiscal 2025 to be in the range of flat to up 1.5 per cent, compared with the prior forecast of flat to up 1 per cent. "The operating environment is fluid, and our outlook reflects uncertainty around how consumer demand could evolve," said CEO Kecia Steelman. Lower inventory losses or damages helped Ulta Beauty in countering higher store and supply chain-related costs. Its quarterly gross profit increased 4.2 per cent to $1.11 billion compared with a year ago.
Telegraph
a day ago
- Business
- Telegraph
Meet the twentysomething nepo baby who built a $1bn beauty brand
Forget about the lipstick index – it's all about the lip gloss index in 2025. It's something that nepo baby and influencer Hailey Bieber was canny enough to realise when her peptide lip treatment was one of the hero products to launch her beauty brand Rhode back in 2022. And now, on the eve of its third birthday, Rhode has become a $1 billion beauty brand, after news broke on Wednesday that Bieber had sold it to Elf Beauty (though she will stay on as chief creative officer and head of innovation). It certainly puts paid to any of Bieber's naysayers and cements her status as a future businesswoman to watch. As Elf chairman and chief executive officer Tarang Amin told WWD: 'In less than three years, going from zero to $212 million of net sales, direct-to-consumer only, with just 10 products – I would never believe that if somebody told me.' Raised in New York, Bieber is the youngest daughter of the actor Stephen Baldwin (best known for playing Barney Rubble in The Flintstones movies) and graphic designer Kennya Deodato. The Baldwins of course, are one of the most famous acting families in Hollywood, with Hailey's uncle Alec being the most well-known. After a few appearances in various projects alongside her family, Bieber started modelling in 2014, starring in high-profile campaigns for the likes of H&M, Guess and UGG. Coinciding with the rise in popularity of Instagram, Bieber was part of a new wave of models whose star power (and bankability) was intrinsically linked to their follower count, with other examples including her friend, Kendall Jenner, and Gigi Hadid. Yet it was her relationship with the Canadian pop star Justin Bieber that truly propelled her into the A-list. The two first dated in 2015, before splitting, reconciling (and quickly becoming engaged and married) in 2018. Their romance has been particularly notable for the ire it inspires in certain corners of the internet – and specifically, Justin fandom – with online trolls accusing Hailey of plotting to steal the singer from his ex-girlfriend, Selena Gomez. All in all, she's undoubtedly proved the detractors wrong – not least because the couple are now parents to a nine-month-old boy, Jack Blues. Much like when Kylie Jenner launched her lip kits back in 2015 (her brand Kylie Cosmetics is now also valued at $1 billion), Bieber clearly recognised that the key to a successful beauty brand would be to give the fans what they wanted – i.e. the products that would enable them to look like her. In January 2022, she kickstarted the 'glazed doughnut skin' trend, a few months ahead of Rhode's launch, which included not only the aforementioned peptide lip gloss but also the peptide glazing fluid and the barrier restore cream. Since then, she has kickstarted a series of ingestible trends on social media tied to product launches, often featuring new flavours of her peptide lip treatment, including 'cinnamon cookie girl', 'brownie-glazed lips', and 'vanilla girl'. 'Strawberry girl', meanwhile, a trend that saw her applying blusher to her nose as well as her cheeks that she popularised in the summer of 2023, led to the launch of her 'blush stick'. Perhaps her most famous – and genius – launch has been her sell-out lip gloss phone cases, which capitalise on how your phone is in your selfie. As well as being her brand's best ambassador, Bieber has also crucially listened when she's gotten things wrong. Case in point was her blush sticks, which some complained did not show up well on darker skin tones. Keen to be inclusive, Bieber invited black creatives to help her finesse the formulation in the lab, leading to a popular relaunch. For Elf Beauty, too, there is much to gain. Not only is Rhode's growth impressive, but Bieber's star is still very much on the rise, especially after being a recent American Vogue cover star. Soon to be sold in Sephora in the UK, the market is only going to get bigger too. 'In an industry that's complicated and over-saturated, Rhode never steps out of its brand's core DNA, which are minimalist cool-girl essentials that are simple to understand and true to the founder, Hailey Bieber's, understated, polished aesthetic,' explains The Telegraph's beauty editor-at-large Annabel Jones. 'Whether it's the original peptide lip treatment, the pocket blush or the barrier butter, Bieber's fingerprints are all over it. Moreover, every single product formula works as well for boomers as it does for alphas and gen-Zers. No harsh active ingredients or overcomplicated messaging, Rhode taps into how real women want to look – fresh and vital. And how they actually get ready – quickly and without fuss.'
